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Stephen Widberg.
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Hi, IFRS 9 says any remeasurements should go through profit and loss. So if the discounted provision is partially reduced, does part of the release go through interest/finance costs and the rest through other income for example ? If it wasn’t at present value there would be no element going through interest?
Stephen Widberg
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If consideration is to be paid in the future, it will always be discounted.
The key thing to state in the exam is that the unwinding of the discount / any other changes will be in the P&L – I think they would normally be in finance costs – but, as long as you say P&L, that will be OK.
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